The 25-year-old Steyn, who has played at fly-half, full-back, centre and wing in accumulating 47 Test caps, has spent the last two-and-a-half years with French club Racing Metro 92.
But he will officially join up with the Durban-based Sharks from July 1 as he resumes his career with the team for whom he made his professional debut in 2006.
Steyn, who made his South Africa but aged 19, will be available for the three-Test home series against England which starts on June 2 in Durban.
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